A bit of action today!
Interim Results (9th Sep 2014)
Synety Group (AIM:SNTY) announces its interim results for the six month period ended 30 June 2014 ("the Period").
Continued strong growth in core KPIs; Licences up 2.1x since year end, ARR up 2.0x.
Orders received and ARR expected to be on or above forecast at year-end.
US Operation exceeds expectations in first months of trading.
Net loss, cash balance and cash burn in line with expectations at half-year point.
Continued strong growth in core KPIs since 30 June to the end of August; ARR through £2m at the end of August.
Simon Cleaver, Executive Chairman, commented:
"Synety continues to demonstrate impressive growth across all its core KPIs and the Board remains very confident in the resultant underlying growth of the recurring revenue streams.
The number of licences, end users and annualised recurring revenue (ARR) continued to grow strongly throughout the first half of 2014, although non-recurring sales of hardware and other one-off fees were softer and some of the growth in recurring revenue was later coming through than expected due to longer on-boarding periods of bigger customers, which will have a short term effect on actual revenues for this year.
The second half of the year has started very well and ARR at the year-end is expected to be on target. The board's growth expectations for next year remain unchanged."
Chairman's Statement
The first half of 2014 was about preparing for growth. Our investments in larger premises in the UK, the doubling of our UK sales team and the launch of our Boston (US) sales office were designed to lay the foundations for building scale and accelerating customer acquisition and recurring revenue.
I'm pleased to be able to report that this investment is beginning to have a positive impact on trading. Indeed during July and August new sales orders received have added another £287k in ARR (Annualised Recurring Revenue). We also witnessed improvements across our other KPIs, with the average rate of new user acquisition increasing since June - particularly encouraging given the holiday period. The increasing recurring revenue per user (RRPU) trend is being fuelled by greater than expected demand for our premium priced service - CloudCall Contact Centre.
Many of the larger Contact Centre customers are choosing to use softphones with headsets rather than traditional desk based telephone handsets, so whilst we see an increase in RRPU, we are seeing a reduction in hardware sales versus expectations.
Results to date from the US are very encouraging. All US indicators are showing that there is considerable appetite for CloudCall and the sales process and conversion matrix, including decision making cycles, which are remarkably similar to the UK, but the market is significantly bigger. To date we have signed up 23 US customers, with several others participating in trials. This is considerably ahead of forecast, and the sales pipeline for later this year looks particularly promising.
Outlook
The strong trading already seen in the second half of this year, together with the US success to date leads the Board to believe that orders received and ARR will be in line with, or ahead of, city expectations at the year end.
The lower levels of revenue we have seen in the first half of 2014, mainly due to reduced hardware and one-off sales together with longer than forecast on-boarding times, mean that revenue for 2014 as a whole is expected to be lower than previous guidance. However, the margin compensation and the current annualised recurring revenue base at the end of the first half, means that loss before tax is tracking in line with expectations.
The cash position is strong and is expected to support the Company's growth aspirations going forward.
Overall the Board is pleased with the progress made so far this year and remains confident in Synety's outlook and future performance.
Simon Cleaver
Executive Chairman
Full Results:-
http://www.moneyam.com/action/news/showArticle?id=4882042
Directors Dealing
Synety Group plc (AIM: SNTY.L), was notified on 9th September that on 9th September 2014 Paul Williams, Chief Financial Officer, purchased 2,283 ordinary shares of 20 pence each in the share capital of the Group ("Ordinary Shares") at a price of 218.45 pence per Ordinary Share for the benefit of his SIPP.
Following this purchase, Paul Williams now holds 39,607 Ordinary Shares, representing approximately 0.47% of the Group's total voting rights.
Additionally, on 9th September 2014 Mark Seemann, Chief Executive Officer, purchased 524 ordinary shares of 20 pence each in the share capital of the Group ("Ordinary Shares") at a price of 219.00 pence per Ordinary Share for the benefit of his SIPP.
Following this purchase, Mark Seemann now holds 876,077 Ordinary Shares, representing approximately 10.4% of the Group's total voting rights.
Partnership with Oracle (9th Sep 2014)
SYNETY Group Plc (AIM: SNTY) has signed a partnership deal with Oracle and is integrating CloudCall with Oracle Sales Cloud CRM.
Whilst SYNETY are carrying out the integration themselves, it was Oracle, the second largest Software Company in the World and the third largest global CRM provider who made the initial approach. The partnership and integration will provide SYNETY with a strong foothold that, in future, should give them the potential to integrate CloudCall with other Oracle solutions.
Simon Cleaver, Executive Chairman, commented:
"We are excited to announce this partnership with Oracle and are proud that one of the largest software companies in the world approached us to provide telephony services for their customer base.
As soon as we have finished the integration with Sales Cloud, we will look to deepen the partnership by rolling out CloudCall and integrating with other Oracle products".